Steve Ballmer pushed Windows Phone 7 and announced that all the lucky PDC paid attendees would get a free Windows Phone 7 device. Pretty cool. The other portions of the keynote were all about Windows Azure and SQL Azure.

Some of the key enhancements include:

Windows Azure Virtual Machine Role – This new Azure role enables customers to create VM’s in the cloud.

Server Application Virtualization – This is the cloud-based server equivalent of App-V for Windows Azure. This allows server applications to be rolled out to Azure worker roles with no need for a formal installation process. A new CTP is planned before the end of 2010.

Support for Windows Server 2003 and Windows Server 2008 SP2 inside the new VM role – Windows Server 2008 R2 will be supported this year and the Windows Server 2003 and 2008 SP2 OSs will come in 2011.

SQL Azure Reporting – SQL Azure will be able to host Reporting Services enabling businesses to publish their report to SQL Azure instances. A CTP will be available before the end of 2010.

SQL Azure Data Sync – This enhancement allows SQL Azure to synchronized databases between other SQL Azure instances and on-premise SQL Server instances. A CTP will be available before the end of 2010.

Database Manager for SQL Azure – Another SQL Azure enhancement is the lightweight web based management application for SQL Azure. The Database Manager for SQL Azure will be generally available before the end of 2010.

Windows Azure Marketplace – Like you seen in the mobile space, Microsoft will also offer an Azure marketplace where developers can market their Azure applications or buy other existing Azure services or applications.